Site Title : AccountingTools
Site Description : AccountingTools provides online continuing professional education (CPE) courses and books for CPAs and other accountants.
Right of setoff definition — AccountingTools
Link: https://www.accountingtools.com/articles/right-of-setoffFREEApr 21, 2022 · What is the Right of Setoff? The right of setoff is a legal right by a debtor to reduce the amount owed to a creditor by offsetting against it any amounts owed by the creditor to the debtor. For example, a bank can seize the amount in a customer’s bank account to offset the amount of an unpaid loan. It is a useful legal right when a borrower ... ... See Details
How to write off a bad debt — AccountingTools
Link: https://www.accountingtools.com/articles/how-to-write-off-a-bad-debt.htmlFREEFeb 04, 2022 · February 04, 2022. A bad debt can be written off using either the direct write off method or the provision method. The first approach tends to delay recognition of the bad debt expense. It is necessary to write off a bad debt when the related customer invoice is considered to be uncollectible. Otherwise, a business will carry an inordinately ... ... See Details
Business valuation methods — AccountingTools
Link: https://www.accountingtools.com/articles/business-valuation-methods.htmlFREEApr 01, 2022 · This is the amount of funds that would be collected if all assets and liabilities of the target company were to be sold off or settled. Generally, liquidation value varies depending upon the time allowed to sell assets. If there is a very short-term “fire sale,” then the assumed amount realized from the sale would be lower than if a ... ... See Details
Accounting for insurance proceeds — AccountingTools
Link: https://www.accountingtools.com/articles/accounting-for-insurance-proceeds.htmlFREEMay 17, 2022 · Accounting for insurance proceeds. May 17, 2022. When a business suffers a loss that is covered by an insurance policy, it recognizes a gain in the amount of the insurance proceeds received. The most reasonable approach to recording these proceeds is to wait until they have been received by the company. ... See Details
Fixed asset disposal accounting — AccountingTools
Link: https://www.accountingtools.com/articles/fixed-asset-disposal-accountingFREEFeb 03, 2022 · A variation on the first situation is to write off a fixed asset that has not yet been completely depreciated. In this situation, write off the remaining undepreciated amount of the asset to a loss account. To use the same example, ABC Corporation gives away the machine after eight years, when it has not yet depreciated $20,000 of the asset's ... ... See Details
Intercompany eliminations definition — AccountingTools
Link: https://www.accountingtools.com/articles/what-are-intercompany-eliminations.htmlFREEMay 24, 2022 · Intercompany Revenue and Expenses. For intercompany revenue and expenses, a business eliminates the sale of goods or services from one entity to another within the group. This means that the related revenues, cost of goods sold, and profits are all eliminated. The reason for these eliminations is that a company cannot recognize revenue from ... ... See Details
Credit memo definition — AccountingTools
Link: https://www.accountingtools.com/articles/credit-memoFREEJun 01, 2022 · A credit memo is a contraction of the term "credit memorandum," which is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.The credit memo usually includes details of exactly why the amount stated on the memo has been issued, which can be used … ... See Details
The difference between an invoice and a statement — …
Link: https://www.accountingtools.com/articles/what-is-the-difference-between-an-invoice-and-a-statement.htmlFREEMay 24, 2022 · An invoice provides more detailed information about a specific sale, such as the item description, item price, shipping charges, and sales taxes, while a statement only provides a grand total due for each invoice. Invoices are issued whenever a sale has been completed, while statements are only issued at set intervals, such as at the end of the ... ... See Details
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